Online Cross Device Usage Best Practice Insights for Retailer & Fashion

GfK Webinar am 6. September 2016 © GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion Referent: Erk Maassen

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What you can expect … … our insight parkour for the next 45 minutes 2. Cross-Device 1. Mobile

5. Summary

User Growth?

First?

4. Programmatic:

what else?

&

Q&A 3. Apps for Gaming & Chatting only? © GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Mobile First?

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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“Mobile First”, always and everywhere? Targeting “Mobile 1st” website design Mobile Advertising

Touchpoint integration Apps supporting Easy mobile Shopping

selling | marketing your products & services

Convenient mobile Payment

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Understanding online behavior via website classification To provide meaningful insights into online usage behavior, GfK developed proprietary website taxonomy. All relevant websites are classified for three dimensions

User Activity

Online Content

Business Context

Classification based on user's main activity when accessing a site

Classification based on the main type of content of a site

Classification based on the main business context of a site

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Relevance of Mobile depends by User Activity

Online Usage Total (in minutes)

44

294

558

Minutes per month

Minutes per month

Minutes per month

82% 43% 21% % mobile* usage share as of total online usage

Money Management

Shopping / Auctions / Rent

Gaming / Gambling

Mobile 1st?

Mobile 1st?

Mobile 1st?

Not Really

Probably

Must Have

* Tablet & Smartphone

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Relevance of Mobile depends by User Activity

89% 82%

61% 43%

21%

43%

43%

46%

62%

53% 46%

30%

% mobile* usage share as of total online usage

Mobile 1st?

Mobile 1st?

Mobile 1st?

Not Really

Probably

Must Have

* Tablet & Smartphone

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Relevance of Mobile depends by Online Content

Online Usage Total (in minutes)

69

32

57

Minutes per month

Minutes per month

Minutes per Month

65% 38%

24% % mobile* usage share as of total online usage

Finance

Fashion

Lifestyle & Hobbies

Mobile 1st?

Mobile 1st?

Mobile 1st?

Not Really

Probably

Must Have

* Tablet & Smartphone

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Relevance of Mobile depends by Online Content

83% 77% 65% 51%

35% 37% 14%

16%

20%

20%

22%

24%

38%

38%

40%

54%

44%

24%

% mobile* usage share as of total online usage

Mobile 1st?

Mobile 1st?

Mobile1st?

Not Really

Probably

Must Have

* Tablet & Smartphone

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Also, target group potential needs to inform mobile 1st prioritization Example

Fashion

Male

Female

Male

Female

50+

50+

20 to 49

20 to 49

Unique User

4.0

Monthly Duration

16

per User

% mobile* usage share as of total online usage

Mio. User

Minutes per User

23

%.

4.5

Mio. User

6.7

Mio. User

8.8

Mio. User

34

Minutes per User

29

Minutes per User

42

Minutes per User

14

%

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

59

%

42

%

Source: GfK Crossmedia Visualizer | Period: May 2016

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Also, target group potential needs to inform mobile 1st prioritization Example

Fashion

Unique User Monthly Duration per User

Male

Female

Male

Female

50+

50+

20 to 49

20 to 49

4.0 Mio. User 16 Minutes per User Low affinity

High affinity

4.5 Mio. User 34 Minutes per User Low affinity

High affinity

6.7 Mio. User 29 Minutes per User Low affinity

High affinity

8.8 Mio. User 42 Minutes per User Low affinity

High affinity

Desktop

152

(Net Reach x Duration Index vs all Onliner)

Device Affinity

54

Smartphone

Tablet

156

58

30

107

223

35

55

162

145

Mobile 1st?

Mobile 1st?

Mobile 1st?

Mobile 1st?

Not Really

Not Really

Must Have

Must Have

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Period: May 2016

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Cross-Device User Growth?

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Digital assets provide exciting opportunities for retailers and manufacturers!

Win new

Inform

customers and drive

Penetration Engage

Optimize by device

Promote

Retain existing customers

Sell © GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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User opportunity by business context

Monthly

New Buyer

Engagement

Opportunity!

Opportunity!

Unique User (in Mio.)

Frequency of Usage (usage days) 1 Day

Grocery

21

Fashion

Electronics | Appliances

Home | Furniture | Garden

2 Days

40%

26

36%

15

19%

42%

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

24%

21%

51%

22

3-5 Days

22%

6 Days

17%

24%

19%

>

19%

18%

23%

12%

13%

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Mobile devices significantly increase user reach! Grocery

Electronics

6.9 Mio.

Home | Furniture | Garden

6.7 Mio.

33

%.

incremental user via mobile

6.3 Mio.

45

%.

29

%.

incremental user via mobile

incremental user via mobile

2,6

2,5

3,5

4,3

2,7

1,9

2,9

21,6

4,7

21,0 1,5

14,9

11,2

12,6

6,7 Desktop Only

Desktop + Mobile Device

Smartphone Only

Tablet Only

All User

Desktop Only

Desktop + Mobile Device

Smartphone Only

Tablet Only

All User

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Desktop Only

Desktop + Mobile Device

Smartphone Only

Tablet Only

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

All User

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Best Practice Example - Grocery Best in Class - Lidl

Benchmark: Ø of top 2 to 6 ranked (by net reach) grocery retailer*

4.1 Mio.

41

33

%.

%.

incremental user via mobile

1.3 Mio. incremental user via mobile

1,4 2,7 0,5

0,6

10,2

0,8 0,1 4,1

5,4 2,6

Desktop Only

Desktop + Mobile Device

Smartphone Only

Tablet Only

All User

Desktop Only

Desktop + Mobile Device

Smartphone Only

Tablet Only

All User

*real, dm, rossmann, rewe, netto

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Best Practice Example - Fashion % of incremental mobile user of total user

24

%.

35

%.

49

%.

42

%.

26

%.

Smartphone & Tablet Tablet Only

1.7 Mio UU

1.6 Mio UU

1.5 Mio UU

1.2 Mio UU

0.6 Mio UU

Bonprix

Brand A

H&M

Brand B

Brand C

4.7 Mio UU

3.0 Mio UU

2.8 Mio UU

Smartphone Only

Desktop only + Desktop & Mobile

Unique User Monthly

6.8 Mio UU

2.2 Mio UU

(in Mio.)

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Mobile applications not just about incremental reach! But also about reaching different groups of consumers!

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Devices do attract significantly different consumer groups! Example of different consumer profiles by device for: Audience Share (in %) in % of all User

Desktop

Index Difference vs. Desktop

Tablet (= 100)

Demographics

Lifestyles (Roper Consumer Styles)

Smartphone (= 100)

Male

60%

Age 3.000 Euro

29%

Advanturers

24%

Demanding

14%

Light TV Viewer

31%

113

125

124

146 136

152

Media Viewing Behavior

Index < 100 Index > 100 © GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Basis: Monthly User of Media Markt Website or App

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Apps for Gaming and Chatting only?

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Reach without quality = wasted marketing investments New User New User

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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Significant performance differences on User Quality! Monthly Bouncer Share

Monthly Recurrent

6+ Days User Share

Monthly

User Share

Monthly Duration

per User (minutes)

H&M, Bonprix Rossmann, Kaufland

H&M, Lidl, NettoOnline

H&M, Rossmann, Kaufland, Aldi Süd

Bonprix, H&M, Ikea, Netto-online, Zalando

Threshold

< 16%

> 40%

> 7%

> 12 minutes

Threshold

> 25%

< 21%

< 2,5%

< 6 minutes

Watch Out!

Watch Out!

Watch Out!

Watch Out!

Top 20%

Bottom 20%

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion Base: 25 Retailer & Fashion retailer & manufacturer

Source: GfK Crossmedia Visualizer | Time Frame: Mar, Apr, May 2016 | Target Audience: Total Online Population

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Apps can be tremendously successful in increasing user engagement!

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

Source: http://openscience.com/

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Apps are already fully learned and adopted in user activities such as … 1. Communication

48

Mio. monthly

Unique User

2. Gaming | Gambling

41

Mio. monthly

Unique User

3. Social Networking

46

Mio. monthly

Unique User

of these

41

32

28

… Mio. people do use an App

% App usage share as of total online usage

88

%.

81

%.

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

40

%.

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Also for retailers, apps can significantly increase user engagement

Monthly unique user (in Mio.)

Across all Devices Desktop

for

Grocery

Fashion

Monthly Duration per User

(in Mio.)

App

2.5 Mio.

Monthly Duration per User (in minutes)

26 Mio.

20

14 Mio. 6.6 Mio.

Monthly unique user

(in minutes)

21 Mio.

Smartphone

Smartphone

for

32

18 Mio.

22

28

8.0 Mio.

13

20

20

42

2.1 Mio. 2,5 x

Smartphone

Browsing

4.6 Mio.

8

times

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

6.9 Mio.

12

3,5 x times

Source: GfK Crossmedia Visualizer | Time Frame: May 2016 | Target Audience: Total Online Population

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Programmatic: what else?

© GfK 06. September 2016 | GfK Webinar Online Cross Device Usage: Best Practice Insights for Retailer & Fashion

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From insights to strategic media planning